Bitcoin Price Should Be ‘Well Supported’ by Institutional Participants in the Months Next: Coinbase Report
In a report released on Friday, Coinbase analysts outlined the factors that could support Bitcoin’s price dynamics in the coming months.
“We believe Bitcoin will receive ample support over the next three to six months as more institutional players adapt to the new ETF reality,” Coinbase analysts said.
Coinbase’s weekly report highlighted recent net inflows into 11 existing U.S. spot Bitcoin ETFs as an indicator of how institutional participation could be an important support factor for Bitcoin price dynamics.
“We have seen tremendous net inflows, totaling an impressive $4.2 billion to date,” Coinbase analysts added.
The Block’s data dashboard It shows that daily fund flows have remained net positive for over two weeks. On Wednesday, BlackRock’s iShares Bitcoin 
BTC
-0.68%
Trust (IBIT) fund recorded the highest daily inflows amounting to $493.12 million.
Comparison with Gold ETFs
The Coinbase report drew parallels between the newly launched Bitcoin fund and the historical trend toward Gold ETFs. “Looking at the ETF landscape more broadly, net inflows into the Bitcoin ETF surpassed the first month inflows into State Street’s SPDR Gold Shares ETF, making it one of the most successful ETF launches in history to date,” the report added. Yes.
According to Bloomberg, BlackRock’s IBIT and Fidelity’s Wise Origin Bitcoin Fund (FBTC) “are in the top 0.1% for new ETF launches among approximately 5,500 ETFs created over the past 30 years.”
Coinbase analysts also highlighted data showing that Bitcoin has found strong support at its 100-day moving average. Finding support at the moving average is considered a positive sign that the asset’s price has historically found support at this level and can be a point of interest for traders looking to enter or exit a position.
Bitcoin surges despite DXY strengthening
Bitcoin’s price rise comes despite the resurgence of the US Dollar Index (DXY). Historically, a strong dollar has generally discouraged investment in risky assets such as Bitcoin.
During periods when the DXY strengthens, investors may enjoy the higher returns or lower volatility of dollar-denominated assets, making them more attractive than riskier options like Bitcoin and technology stocks.
Since the beginning of February, DXY is up nearly 3%. During the same period, Bitcoin soared nearly 24%.
The largest digital asset by market capitalization was trading at $52,242 at 11:25 a.m. ET, according to The Block’s pricing page. The GM 30 index, which represents the top 30 cryptocurrencies, fell 0.26% to 112.36 over the past 24 hours.
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